Japanese Yen exhibited an impressive rally last week and ended as the strongest performer. The move was spurred by Japan's substantial wage growth, which shot JGB yield higher and countered the impact of rising benchmark yields in the US and Eurozone. In light of these developments, signs are pointing towards a potential bullish reversal for Yen that could transpire without government intervention. Contrastingly, Dollar failed to impress, ending as the second worst performer after Canadian Dollar, despite the release of solid job data. Strong rally in 10-year yield seemingly did little to support the greenback. The resurgence of Yen and robustness of Euro have potentially laid the groundwork for Dollar Index to plunge below the 100 mark. Concurrently, Gold appears to be gearing up for another attempt at bullish reversal as pressure mounts on the greenback again. Elsewhere in the currency markets, New Zealand Dollar ended as second strongest performer of the week, closely followed by British The Australian Dollar, however, found itself on the backfoot, ending as the third weakest. Swiss Franc and Euro presented mixed results, overshadowed by the solid performance from Sterling. |
